Long-term care insurance can be incredibly valuable for people as they age. If you have been saving diligently for retirement, if you own your own house, or if you have other assets built up throughout your career, it is essential that you at least consider long-term care insurance.
Believe it or not, the older you are, the greater the likelihood you may need some type of long-term care in your future. In your late 40’s, 50’s, or early 60’s, you might not even think it’s remotely possible you will need long-term care, but as you close in on 70 and move through your 70’s and into your 80’s, that likelihood will increase with each passing year.
Many people fail to understand that their primary health insurance or Medicare and Medicaid simply aren’t going to cover long-term care expenses. Medicaid won’t kick in until you have used up almost all of your personal assets to pay for long-term care yourself.
Long-term care insurance is designed to help protect your assets and personal savings in the event you require that level of ongoing care in your future.
Now, as far as choosing a long-term care insurance policy, there are a few critical steps to consider. You can design a policy that will match your current budget.
Key Step #1: Consider your age.
The sooner you begin a long-term care insurance policy, the more affordable the monthly budget will be. Of course, this doesn’t mean you need a long-term care insurance policy in your 30’s or even in your early 40’s. However, the longer you wait, the higher the monthly premiums will likely become and the greater your risk of being denied because of your age, family history of health issues, and some other factors.
The sweet spot for long-term care insurance is around 55. So, if you’re in your early to mid 50’s, don’t wait much longer because the monthly premiums will likely increase.
Key Step #2: Think about how long the policy will pay out for.
The average long-term care insurance policy will pay out for about three years of services. You can shorten that to a year, two years, or some other timeframe, which could lower your monthly premium.
Just keep in mind that the average cost of nursing home care in the US right now is about $85,000 and that will increase. So, you want to have enough to cover a potentially lengthy state.
Key Step #3: Adjust the waiting period.
Between the time you start receiving long-term care and your policy kicks in could be several weeks or a few months. The longer the stretch, the lower your monthly premium could be. Of course, keep in mind you will have to be financially responsible for the care you receive during that gap.
The best thing you can do is sit down with an experienced long-term care insurance company agent or broker to discuss your options. Don’t wait, though, as accidents and other health emergencies can and often do happen when we least expect them.
If you or a loved-one are considering Long-Term Care Insurance Companies in Del Mar CA, please contact Steve Elliott at Capstone Insurance for an honest discussion about your future and your options. Call today (858) 350-3161.
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